LOAN SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2023

Transfers and Servicing [Abstract]

Schedule of Carrying Value of Loan Servicing Rights Assets

The carrying value of the loan servicing rights assets is shown in the table below:

(dollars in thousands)	March 31, 2023		December 31, 2022
Loan Servicing Rights
Residential mortgage	$	149,986	$	147,014
SBA	3,166		3,443
Total loan servicing rights	$	153,152	$	150,457

The table below is an analysis of the activity in the Company’s MSRs and valuation allowance:

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing rights	2023		2022
Beginning carrying value, net	$	147,014	$	206,944
Additions	7,730		21,701
Amortization	(4,758)		(6,062)
Recoveries	—		9,653
Ending carrying value, net	$	149,986	$	232,236

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing valuation allowance	2023		2022
Beginning balance	$	—	$	25,782
Recoveries	—		(9,653)
Ending balance	$	—	$	16,129

The table below is an analysis of the activity in the Company’s SBA loan servicing rights and valuation allowance:

(dollars in thousands)	Three Months Ended March 31,
SBA servicing rights	2023		2022
Beginning carrying value, net	$	3,443	$	5,556
Additions	44		538
Amortization	(321)		(710)
Ending carrying value, net	$	3,166	$	5,384

Schedule of Sensitivity of Fair Value to Adverse Changes in Model Inputs and/or Assumptions

The key metrics and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below:

(dollars in thousands)	March 31, 2023			December 31, 2022
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	10,581,669		$	10,046,052
Composition of residential loans serviced for others:
FHLMC	16.82		%	16.80		%
FNMA	50.19		%	50.09		%
GNMA	32.99		%	33.11		%
Total	100.00		%	100.00		%
Weighted average term (months)	354			353
Weighted average age (months)	24			22
Modeled prepayment speed	8.55		%	8.22		%
Decline in fair value due to a 10% adverse change	(3,940)			(5,800)
Decline in fair value due to a 20% adverse change	(8,283)			(11,184)
Weighted average discount rate	10.73		%	10.00		%
Decline in fair value due to a 10% adverse change	(4,840)			(6,413)
Decline in fair value due to a 20% adverse change	(10,361)			(12,330)

(dollars in thousands)	March 31, 2023			December 31, 2022
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	311,532		$	326,418
Weighted average life (in years)	3.69			3.69
Modeled prepayment speed	18.37		%	18.24		%
Decline in fair value due to a 10% adverse change	(187)			(177)
Decline in fair value due to a 20% adverse change	(359)			(340)
Weighted average discount rate	15.98		%	19.57		%
Decline in fair value due to a 100 basis point adverse change	(88)			(83)
Decline in fair value due to a 200 basis point adverse change	(173)			(163)